Air Liquide Sa · EURONEXT:AI
Air Liquide Sa — Investor Day (December 2013)
59 slides from Air Liquide Sa's investor day presentation, Dec 11, 2013
Slide 1: Air Liquide Investor Day
A LIQUIDE A / a he ib [ ! ] |
Slide 2: A remarkable stock performance
INVESTO A remarkable stock performance 1913 to 1933 1933 to 1953 1953 to 1973 1973 to 1993 1993 to 2012 15.7% 147.2% I 47.236 100 80 60 40 Legend 20 : Share 1913 1922 1931 1940 1949 1958 1967 1976 1985 1994 2003 2012 mm Adjusted Dividend (€) | Adjusted Share Price (€/Share) x2) INVESTOR DAY // Decem
Slide 3: Major trends shaping our markets
Major trends shaping our markets Natural Gas prices (USD/mBtu) Asia / World population (billions) Urban 2. ZO Source: United Nations © INVESTOR DAY // December 11, 2013 // Welcome // Mobile cellular subscriptions (millions) 1000 China / 750 / 500 Europe WA 250 N. America 0) Source: World Bank me LIQ
Slide 4: Fabienne Lecorvaisier, Chief Financial Officer
A LIQUIDE A /INVESTOR abienne Lecorvaisier Chief Financial Officer
Slide 5: Delayed recovery
Delayed recovery INVESTO +4.0% +3.5% +3.0% +2.5% +2.0% GDP Forecast 2010 2011 2012 2013 2014 2015 me 2013 me 2012, eam 2011 Source: IMF, World Economic Outlook Database, Gross domestic product xs) INVESTOR DAY // December 11, 2013 // Where do we stand? // mw LIQUIDE |
Slide 6: Outperforming the market
Outperforming the market CAGR . 2010 to 2015 AL Revised Growth Forecast +5% to +7% Revised Market 2008 2009 2010 2011 2012 2013 2014 2015 © INVESTOR DAY // December 11, 2013 // Where do we stand? // mw LIQUIDE |
Slide 7: Contrast among business lines
. : INVESTO Contrast among business lines POPS HCOOH LEE ELLE OOOH LCL EE EOL OSLO LOL EEL ELLE DOLE EH EEE LOE OD EEE EEE LCL EEH EDEL ECL EOOOOS exp Gl = +7% to +8% 0% +1% +2% +38% +4% +5% 46% +7% +8% +9% +10% 411% 412% Compound Average Growth Rate 2010-2015 a ALMA Range qa Updated Forecast @ INVE
Slide 8: Large Industries
Large Industries INVESTO f— “Nf “Nf \ Geographic Mix Product Mix 40% i +8% —9% mum Africa Y Middle East 10% 20% a | | = = Cogen mmm Asia Pacific mmm Americas HyCO fmm Europe mAir Gases 2005 2010 2015 =0=Developing MMM Sales (€br) +x% CAGR 5 Years 2005 2010 2015 2005 2010 2015 \ 4X 4% 4 # Inline @ Fo
Slide 9: Industrial Merchant
Industrial Merchant - (~ : : 4 Geographic Mix Product Mix +3% — 5% 20% 30% mmm Africa Middle ° East 10% =E&l& Other mms Asia Pacific = Cylinders mmm Americas mmm Europe =Bulk & On-Sites 2005 2010 2015 =0=Developing MMM Sales (€br) +x% CAGR 5 Years 2005 2010 2015 2005 2010 2015 @ Unexpected @ Focus ©
Slide 10: Electronics
Electronics (- ~ Geographic Mix 40% 30% oo? mmm Asia Pacific mmm Americas ‘ +4% - 6% ESG incl. ALOHA mmm Europe = Carrier 2005 2010 2015 Gases =0=Developing MMM Sales (€br) +x% CAGR 5 Years 2005 2010 2015 2005 2010 2015 YY 4 # Inline @ Focus © Carrier gases competitiveness © Positions in Asia © Glob
Slide 11: Healthcare
/ INVESTOR Healthcare SDAY 895013) ~ ‘ Vf ) 12% 9% mmm Africa 5% Middle East = Hygiene & Seppic mms Asia Pacific ‘ +7% - 8% Home mmm Americas mmm Europe ™ Medical Gases 2005 2010 2015 =O—Developing 2005 2010 2015 2005 2010 2015 AY MMM Sales (€br) +x% CAGR 5 Years # Inline @ Focus © > 1,000,000 patie
Slide 12: 2010-2015 G&S for Industries sustained sales
2010-2015 G&S for Industries sustained sales 2015 estimated share of e ee? developing sales Ad g Devel ° in GSI 0 vance eveloping Economies +15% )) Economies Notes: - GSI: Gas & Services for Industries = Large Industries (LI) + Industrial Merchant (IM) + Electronics (EL) - Estimated Sales CAGR 2010
Slide 13: 2010-2015 dynamic Healthcare
2010-2015 dynamic Healthcare 18% 2015 estimated share of Healthcare sales ° in G&S %e | +8% J Healthcare Note: Estimated Sales CAGR 2010 to 2015 13) INVESTOR DAY // December 11,2013 // Where do we stand? // mw LIQUIDE y
Slide 14: Resulting in a stronger G&S business mix
Resulting in a stronger G&S business mix 2010 2015e Geographies LI+IM+EL Advanced LI+IM+EL Developing HC @ INVESTOR DAY // December 11, 2013 // Where do we stand? // me LIQUIDE |
Slide 15: Updated ALMA annual growth objective
INVESTO Updated ALMA annual growth objective Industrial Financial Total Investment: €10bn €12bn Pere eee rece ree ree sree eee esses see eee Eee eee EEE EEE EEE EOE HOE EEE EEE ESSE ESOS EOE OEE EEE ESSE ESOS EEE OE DEES EEE ES to 9 Market Sales Base Development Sales 2010 Initiatives 2015 Air Liqui
Slide 16: Reinforced efficiency programs
/\NVESTOR Reinforced efficiency programs 6 DAY |, Siders > €0.4bn €0.8bn 300 +30% vs initial objective Annual > objectives 2005 2006 2007 : 2008 2009 2010 '2011 2012 2013 2014 2015 ic) INVESTOR DAY // December 11, 2013 // Where do we stand? // mw LIQUIDE |
Slide 17: Steady margin improvement
Steady margin improvement AY Risteo FOR 12% 11% 10% 9% 8% 7% -@ INVESTOR DAY // December 11, 2013 // Where do we stand? // D&A / Sales 2002 2004 2006 2008 2010 2012 18% 17% 16% 15% 14% 13% OIR / Sales 2002 2004 2006 2008 2010 2012 mw LIQUIDE |
Slide 18: Steady margin improvement
INVESTOR Steady margin improvement > r OIR / Sales 33% : oe, =— LI 29% _ *s Tee econ. eet - eee. eee LI 25% ect 21% — 13% e==p HC 9% 2002 2004 2006 2008 2010 2012 \ (1 OIR margin excluding natural gas impact 18) INVESTOR DAY // December 11, 2013 // Where do we stand? // me LIQUIDE |
Slide 19: Current investment decisions will deliver sales
/\NVESTOR Current investment decisions will deliver ss 1200 [2 600 900 450 600 300 300 150 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 B Industrial investment Decisions B Incremental sales from industrial projects () Industrial Special Growth Investment Decisions above €10m 19) INVESTOR DAY //
Slide 20: Targeted industrial investment strategy
INVESTOR DAY 2013 Targeted industrial investment strategy €2.6bn of projects in hand Estimated investment over the 2011 — 2015 | Estimated investment over the 2011 - 2015 period | Vv €1 “3bn of mae ( 10bn / G9 ra Other emenicas ra Activities . Investment Africa / Electronics | Healthcare 7 in hand)
Slide 21: €2bn of targeted acquisitions
€2bn of targeted acquisitions Estimated acquisitions over the 2011 — 2015 period Large Industrial Industries Merchant Electronics J Healthcare J her Activities @ INVESTOR DAY // December 11, 2013 // Where do we stand? // mw LIQUIDE |
Slide 22: Continued value creation
Continued value creation INVESTO 14% 12% 10% 8% 6% 4% 2% 0% Value Creation <= ROCE =— WACC 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 H1 2013 (1) Reminder : Return On Capital Employed after tax: (Net profit before deduction of the minority interests — net finance costs after taxes) / weighted
Slide 23: While acting responsibly
While acting responsibly ...in the way we contribute to our customers, our patients and the society at large ...in the way we build ...in the way we develop relationships with our our people and run shareholders and all our operations other stakeholders x23) INVESTOR DAY // December 11, 2013 // Wher
Slide 24: Adjusted ALMA 2010-2015 Status
Adjusted ALMA 2010-2015 Status f- ‘NG Keep Sales growth Deliver +30% above Market more efficiencies +1% to +2% €1.3bn Above Market over 5 years \ Js J 4 ‘NG \ Maintain Embed ROCE"” Responsibility in the way we act and 11% to13% manage our operations and initiatives \ J. y, Reminder: Return On Capita
Slide 25: What's next
What’s next °°» §=§= 4 ¢ Past & current investment will deliver ¢ From geographic strategy to market strategy @ Major trends creating new market opportunities APPETITE FOR DUSTRY. x25) INVESTOR DAY // December 11, 2013 // Where do we stand? // me LIQUIDE |
Slide 26: Industrial Globalization & Resource Constraints
INVESTOR Risteo FOR INDUSTR GLOBALIZATIG EOOURCE x26) INVESTOR DAY // December 11, 2013 // me LIQUIDE |
Slide 27: What is driving industrial gas demand?
What is driving industrial gas demand? Maximizing Industry local resources globalization Energy Independence Production Environment growth protection Industry modernization Competitive energy Outsourcing @ INVESTOR DAY // December 11, 2013 // Industrial Globalization & Resource Constraints // me LIQ
Slide 28: Air Liquide positioned in over 60% of top clusters
INVESTO Air Liquide positioned in > 60% of top 10 clusters Joffre: =O Mississippi River. Gulf Coast & Camacari Triunfo(Brazil) O e) @ Air Liquide presence European Network Zero Nitrogen interruption Rotterdam Antwerp Terneuzen North Ruhr Normandie Fos & Tarragona fe. ‘Al Jubail (KSA) & Yanbu(KSA) Sh
Slide 29: Creating Industrial Gas Growth Opportunities
INVESTOR ...Creating Industrial Gas Growth Opportunities = A Day <7 TT. Over the fence Oz LI market 50,000 tpd 800;000 Storage growth Nm?/h ———————— Gas & Methanol Ethylene & Derivatives © Derivatives New investments on Proprietary the U.S. Gulf Coast technologies Syngas Cleaning IM market growth a
Slide 30: Gulf Coast pipeline systems, a competitive advantage since 1986
Gulf Coast pipeline systems ... > a competitive advantage since 1986 = £ #&# Py == Oxygen pipeline Nitrogen pipeline Hydrogen pipeline Hydrogen storage cavern Liberty Channel *k Announced Investment Reliable and flexible supply # New investment on existing pipeline Seni 3,200km infrastructure Victor
Slide 31: Leveraging our model and technologies
Leveraging our model and technologies Co & By-products AIR LIQUIDE A Over the Fence > 98% contracts \ renewed Customer x31) INVESTOR DAY // December 11, 2013 // Industrial Globalization & Resource Constraints // me LIQUIDE |
Slide 32: Leveraging our model and technologies
/\NVESTOR Leveraging our model and technologies Co & By-products =—— wai... | Air Liquide Me > Technology & Services AIR LIQUIDE Pye wou: | Over the Fence > Air Liquide . l 4 = Technology \ Air Liquide > 4s Technology ( —— Customer Increased value to the customer x 32) INVESTOR DAY // December 11, 2
Slide 33: Conclusion
Conclusion WARKe, ) @ Strong market potential driving growth @ Leveraging our proven strengths Above #6% per year # Leveraging strong customer loyalty NN position Growing faster than market to reinforce our leadership position x 33) INVESTOR DAY // December 11, 2013 // Industrial Globalization & Res
Slide 34: Evolving Consumption & Demographics
APHICS 24) INVESTOR DAY // December 11, 2013 // me LIQUIDE |
Slide 35: Striking evolutions
Striking evolutions INVESTOR Risteo FOR Americas population +19% from 2010 to 2030 Asian urban population +46% from 2010 to 2030 World urbanized population 70% in 2050 OCDE waste production x2 from 2010 to 2015 By > In Advanced economies, people aged > 60 years increase from 22% to 30% by 2050 China
Slide 36: Markets served by Air Liquide
Sr a eee i. . Of our markets MATERIALS & ENERGY AUTOMOTIVE & FABRICATION TECHNOLOGY & RESEARCH <4) CRAFTSMEN Qs C= & NETWORK 2000. 889. O00; q TY, 2012 Sales and percentages on @ws DAY // December 11, 2013 // Evolving Consumption & Demographics // A AIR LIQUIDE -@: eo FOOD & PHARMA
Slide 37: Leverage trends to boost our growth
Leverage trends to boost our growth Deploying Improving Boosting proven technologies metal fabrication recycling to developing economies performance efficiencies through innovation (0) Meeting (0) more stringent Answering food safety standards to simplicity and higher mobility needs Eu 4 oh / a Lye
Slide 38: A unique positioning to capture growth
A unique positioning to capture growth Competitiveness Ga» 22 # Realignment of structure, +3% _—__} | m4 i i standard filling with adjusted cost base bulk logistics efficiencies plants since # Leveraging assets in per year since 2010 2010 promising markets and clusters MORE THAN # Client process exp
Slide 39: Different Healthcare systems
. INVESTOR Different Healthcare systems Z Health expenditures as a % of GDP & 8% S 411% 115% 9 9.5% 9.5% e 8.5% 9% 95% 6% 6% «88% 7% 5% Sources: World Bank and World Health Organization China* Mexico Russia Turkey South South Brazil United Spain Italy Germany France USA “Including Taiwan Korea Afric
Slide 40: An expertise along the continuum of care
An expertise along the continuum of care Chronic EVE, disease yo ot” disease Wa e Vp, arke Market® ‘5, Home Healthcare BA)io fey +3 to 45% 46% Medical gases 45% (hospitals) Hygiene and specialty ingredients \ 36% 19% Prevention & Well being # Committed in 30 countries @ Serving 7,500 hospitals and c
Slide 41: A confirmed strategy
/\NVESTOR A confirmed strategy 63 DA Y 2013, SS AIR LIQUIDE STRATEGY # Consolidate positions New innovative offers @ Enter new Geographies Other diseases # Bolt-on acquisitions Bolt-on acquisitions Competitiveness @eee Along the continuum of care Acute Chronic Prevention & disease disease Well being
Slide 42: New market emerging horizon 2020
INVESTOR New market emerging horizon 2020 ##é#& PEDAY Patients a Potential cared in 2013 patients Hospitals Home Healthcare Future Therapies over 20 years of experience in Healthcare x 42) INVESTOR DAY // December 11, 2013 // Evolving Consumption & Demographics // mw LIQUIDE |
Slide 43: Appetite for Innovation
43) INVESTOR DAY // December 11, 2013 // me LIQUIDE |
Slide 44: Innovation boosters
Innovation boosters INVESTOR DA Science & Technology R&D Engineering ALTEC & centers Construction Science & Open Entrepreneur Innovation Technology R&D Engineering ALTEC & centers aB&T Construction network 201 ~ Venture Capital ALIAD Venture Capital Expertise, Audacity, Intuition x 44) INVESTOR DAY
Slide 45: Mapping battlefields
. . / INVESTOR Mapping battlefields 65 Bee) ~ Business + model TRANSFORMATIONAL Advanced technology > + x45) INVESTOR DAY // December 11, 2013 // Appetite for Innovation // mw LIQUIDE |
Slide 46: From Core to Adjacent
INVESTOR From Coreto Adjacent == = = JA FIDAY % EL Sales Sensitivity to Market 2000 2012 mnnunnmnnnnnnnnnnn 20122, Industry Cycles Driver >) > \ New ©) Carrier Gases 42% Investments Energy cost ———4 reduction _ . . Msi wafers) Electronic Specialty 24, m2 FPD Gas ww) ~~ — — . More complex Advanced El
Slide 47: Advanced Electronic Materials: a promising new market
Advanced Electronic Materials: a promising new market : Advanced Electronics Capital Intensity + - Intellectual Property Intensity - ++ Profitability - Sensitivity to Business Cycles ++ $1 bn ” y market Growth Potential + by 2017 Overall More Attractive AIR LIQUIDE G | ALOHA\ a pan vovire offers = N
Slide 48: Biogas valorization: a promising new market
Biogas valorization: a promising new market ee New Clients & usages = * Injection in the natural gas ™ 9 network f ° Green chemistry , * Decarbonized mobility New Business Models if ° From Technology to equipment BIOGAS to Over The Fence _ Se Tea * Valorization of green certificates + Feed-in tariff
Slide 49: H2 Energy markets
hot H, Energy markets New Clients & usages ° Forklifts ) * Captive fleets * Car owners + Large infrastructure upfront deployment: innovative financing schemes YY. % Qe) New technologies * H, stations ° High Pressure supply chain * Remote Monitoring and Tracking x49) INVESTOR DAY // December 11, 2013
Slide 50: New market emerging horizon 2020
/ INVESTOR New market emerging horizon 2020 HOG Lbs. Cars converted Potential to Hydrogen market Mobility | oan Forklifts | Energy Storage ety] @ INVESTOR DAY // December 11, 2013 // Appetite for Innovation // Y Filling station mw LIQUIDE |
Slide 51: Fabienne Lecorvaisier
| AIR LIQUIDE | / a ae -otier & Fabienne Lecorvaisier
Slide 52: Outlook: enhance existing models, create new opportunities
Large Industries Enhance existing Industrial Merchant models Healthcare conversjon eHealth Create new _ ~ Biogas H, Mobility opportunities OTF+ projects 52) INVESTOR DAY // December 11, 2013 // Outlook // me LIQUIDE |
Slide 53: Enhancing the model
. INVESTO| Enhancing the model 2011 to 2015 Next Cycle €12bn >>> < €10bn +4% +2% to to+3% +8% t +4% to +5% +2% to+3% +4% to +5% Air Liquide vane] Sales Base Development Sales Base Development Horizon 2010 Initiatives 2015 Initiatives 2020 Development initiatives = start-ups + ramp-ups + acquisitions
Slide 54: BLs growth based on market estimates
Riste0 Fi BLs growth based on market estimates INVESTOR 1 Large Industries +6% to +10% Industrial 0 0 Merchant +2% to +6% Electronics +2% to +6% Healthcare +3% to +7% 0% +1% +2% +38% 44% +5% +46% +7% +8% +9% +10% 411% 412% WH Market Range Q INVESTOR DAY // December 11, 2013 // Outlook // me LIQUIDE
Slide 55: Sales map horizon 2020
/\NVESTOR Sales map horizon 2020 6 DA Growth" +6 to 9% Large Industrial L) Electronics L} Healthcare (1) Under normal market conditions Industries Merchant x55) INVESTOR DAY // December 11, 2013 // Outlook // mw LIQUIDE |
Slide 56: Next cycle targeted investment
/\NVESTOR Next cycle targeted investment 2016 to 2020 estimated investment oD Large i Industrial L) Electronics L} Healthcare Industries Merchant @ INVESTOR DAY // December 11, 2013 // Outlook // mw LIQUIDE |
Slide 57: Boosters: Energy Transition, Mobility & Digitalization
Energy Transition Mobility & Digitalization @ INVESTOR DAY // December 11, 2013 // Outlook // me LIQUIDE |
Slide 58: Development supported by a sustainable cash model
INVESTOR By, Development supported by a sustainable cash model ‘ Cash Flow: 19€ 50% Net Result: 10€| D&A: 9€ Pay-out y) § 4 Equity 5€ + 0, Gr Gearing: 60% “ J, a 13€ Growth 4€ Non-Growth CAPEX CAPEX +7€ J Additional Sales Capital intensity 1.8 ss) INVESTOR DAY // December 11, 2013 // Outlook // me L
Slide 59: Long term ambition
INVESTOR Long term ambition e Sales Innovation re: — | above market Continuous margin improvement Competitiveness ROCE Boss 1.2 | 11% to 13% © INVESTOR DAY // December 11, 2013 // Outlook me LIQUIDE